Shareholders invest $100 000 in a business.Inventory of $80 000 is bought on credit and damaged inventory that was purchased on credit for $10 000 was returned.Equipment costing $200 000 was purchased,which was financed by a loan from the seller,repayable in five years.The business paid $40 000 to accounts payable.Total assets increased by:
A) $100 000.
B) $170 000.
C) $330 000.
D) none of the answers provided.

Question

Quizplus · Accepted Answer

Total assets increased by $170,000 (inventory increase of $80,000, equipment increase of $200,000, less accounts payable decrease of $40,000, and damaged inventory decrease of $10,000).

Shareholders Invest $100 000 in a Business